Institute for Supply Management (ISM) , Chart

ISM Manufacturing Composite Monthly (NAPM, May Release)

Nice up tick in the number from 36.3 to 40.1 percent. The low reading for the move was in December at 32.9 percent.

Some encouraging news, the new orders index rose to 47.2 percent.

"The decline in the manufacturing sector continues to moderate. After six consecutive months below the 40-percent mark, the PMI, driven by the New Orders Index at 47.2 percent, shows a significant improvement. While this is a big step forward, there is still a large gap that must be closed before manufacturing begins to grow once again. The Customers' Inventories Index indicates that channels are paring inventories to acceptable levels after reporting inventories as 'too high' for eight consecutive months. The prices manufacturers pay for their goods and services continue to decline; however, copper prices have bottomed and are now starting to rise. This is definitely a good start for the second quarter."

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